Carmanah Annouces First Quarter Revenues Up 38%

May 9, 2003 -

P>Victoria, BC – May 9, 2003 – Carmanah Technologies Corporation
(TSX VE: CMH) is pleased to announce its first quarter results for the three months ended March 31, 2003 and 2002.

Carmanah’s total revenues for the three months ended March 31, 2003 increased 38% to $1,906,478, compared to $1,381,044 for the same period in 2002. Revenues were derived from the sale of solar-powered LED (light emitting diode) hazard, safety and navigation lights. Sales were sourced through a worldwide distribution network and direct sales efforts in key market segments and territories. Revenue growth was achieved through increased investment in direct sales and marketing resources and activities. Sales increased throughout the Company’s existing product lines and through the introduction of several new products.

Net income for the three months ended March 31, 2003 was $12,915 or $0.001 per share compared to a loss of $24,580 or $0.001 per share for the three months ended March 31, 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $63,883, compared with $72,267 for same period in 2002.

Carmanah’s gross profit margin decreased to 52% of sales, a 4% reduction over previous year’s 56% gross profit margin. This decrease was primarily the result of the decline of the US dollar, relative to our CAD dollar, as the Company’s sales pricing of its products is primarily in US dollars. The Company will monitor any further changes in this exchange rate and take appropriate steps to help maintain its margins.

Wages and benefits expense for the three months ended March 31, 2003 increased 37% to $443,346, compared with $323,834 in the same period in 2002. This increase is the result of an increase in sales and administrative staff in support of planned sales growth. The wages and benefits expense as a percentage of sales remains consistent for both periods, at 23%.

Office and administration expenses in first quarter 2003 were $158,613, representing a 31% increase over 2002 at $121,488. During the first quarter of 2002, the Company was still running its entire operation in one building. It has since expanded into an adjacent building. This has resulted in increased rent, utilities and general office costs for first quarter 2003, compared with first quarter 2002.

During first quarter 2003, research and development expenses of $196,664 represented a 26% increase over the previous year’s $155,894. Carmanah is investing in development of products for new markets, at a rate that is relative to its sales growth. As a percentage of sales, research and development expenses for 2003 are 10%, whereas for 2002 they are 11%.

Sales and marketing expenses in 2003 were $142,569, representing a 7% increase or $9,390 over 2002 at $133,179. Carmanah’s continuous marketing for new and existing product lines throughout its worldwide marketplace resulted in an increase of $37,219 in marketing activities for the period ended March 31, 2003. However, Carmanah’s tradeshow and related travel costs in the first quarter of 2003 were $29,109 lower than what occurred in first quarter 2002. This is due to timing of when key tradeshows take place that Carmanah chooses to attend.

Carmanah’s cash and cash equivalents at March 31, 2003 were $1,690,276, compared to $679,100 at December 31, 2002. The increase is due primarily to receipt of funds raised on issuance of 2,000,000 shares at $0.74, resulting in net proceeds of $1,264,519. Approximately $245,000 of the cash usage is the result of increased inventory levels, and pay down on the Company’s line of credit. The Company’s net working capital at March 31, 2003 is $3,362,599 (current ratio of 4.47:1) as compared to $2,006,148 (2.71:1) at December 31, 2002.

About Carmanah Technologies Inc.

Carmanah is an award winning alternative energy manufacturer specializing in patented solar-powered LED lighting solutions for the marine, transit, roadway, railway, mining and aviation markets. The company has more than 50,000 units installed in 110 countries. The shares of Carmanah Technologies Corporation (parent company) are publicly traded on the TSX Venture Exchange under the symbol “CMH” and on the Berlin and Frankfurt Stock Exchanges under the symbol “QCX”. For more information, please visit www.carmanah.com